Rental Property Expense or Repair

[clsrules13]

First scenario: I hired a contractor to fix up the front and rear porches on one of my rental properties.  This included pressure washing, scraping, replacing rotten boards and painting.  The total for the labor + materials was $2,275. 

Second scenario: On a different rental property I hired a different contractor to address the crumbling plaster on the exterior foundation wall.  it involved replacing missing bricks, removing loose plaster, pressure washing, installing metal mesh, adding new plaster around the whole foundation and sealing.  the cost of this work was $4,197.

Would either of these qualify as regular repairs or fall under a safe harbor?  or do I need to depreciate?

[PatriciaV · Accepted solution]

Both scenarios represent repairs to existing elements of your rental properties rather than improvements that would be capitalized and depreciated. You would expense (deduct) the full amount in the year the repairs were made. No depreciation is applicable.

See also IRS Pub 527 Repairs and Improvements

[clsrules13]

Thanks @PatriciaV!

What about smaller repairs like

• $700 to scrape, repair cracks and re-texture a ceiling
• $500 to replace a leaking section of radiator water line
• $140 for new kitchen faucet + $200 to cut off and replace water shutoffs.  Faucet was leaking and shutoffs were seized.
• $150 to replace and secure soffit that was torn off by a raccoon
• $120 in labor to fix a furnace issue

All of these things seem like repairs to me and should be expensed in this tax year.  But I know that it gets tricky with HVAC and plumbing.

I also paid $150 to have a 50 amp outlet installed to allow for replacing a broken gas range with an electric one.  I know how to expense the new range, but not sure about the outlet/breaker install.  I'm guessing it's an improvement/betterment, but wanted a second opinion.

[AnnetteB6]

All of the things you mentioned in the 'smaller repairs' list would be considered to be repairs.  These are all deducted in the year they were done.  They are not depreciated.

For the amount that was paid to install the 50 amp outlet, you could add that to the cost basis of the new range since it was required to be able to install it.

@clsrules13